Question 1

Direct exporting is:

Accepted Answer

Direct exporting is when a firm sells its domestically produced goods in a foreign country without intermediaries, meaning the company itself handles the exporting process without the help of an intermediary.

Question 2

In Venezuela and Chile, a cell phone consumer can purchase wireless local, wireless long distance, and Internet in addition to his or her phone services. In Peru, a consumer can purchase wireless local services, but Internet access is generally not available. In Argentina, a consumer can purchase wireless local and Internet services, but not wireless long-distance service. These communication differences indicate the
Differences in these countries':

Accepted Answer

The communication differences in these countries indicate differences in their economic infrastructure, specifically in the telecommunications industry. Each country's regulatory and market conditions have led to different offerings and levels of development in their communication networks.

Question 3

Hindustan Lever's initiative in India to provide start-up loans to women to buy stocks of products to sell to local villagers because it realized it could not sell to the rural poor in India unless it found ways to distribute its products such as soap, shampoos, and laundry detergents is an example of:

Accepted Answer

The initiative by Hindustan Lever in India to provide start-up loans to women to buy stocks of products to sell to local villagers is an example of microfinance. Microfinance refers to providing small loans and other financial services to low-income individuals who normally lack access to traditional banking services. The aim of microfinance is to promote entrepreneurship and alleviate poverty by providing credit to those who would otherwise be unable to obtain it.

Question 4

The new Motorola-Google phone, the 'Moto-X' is produced in a factory in the USA and then shipped to consumers both in the USA and in other countries. This process is referred to as:

Accepted Answer

Exporting refers to producing goods domestically and selling them abroad, which is what is happening in this scenario. The Moto-X is produced in a factory in the USA and subsequently sold to consumers both in the USA and in other countries, making it an example of exporting. Transporting is too broad of a term to describe this specific process, countertrading involves exchanging goods for other goods rather than using money, and foreign exchange refers to the conversion of one currency into another.

Question 5

The U.S. motorcycle manufacturer Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the U.S. Harley-Davidson uses:

Accepted Answer

Harley-Davidson is using intermediaries to sell its motorcycles in numerous nations outside the U.S., which is an example of indirect exporting.

Question 6

The world's currencies are of critical importance in global marketing, and any fluctuations in________ can cause issues.

Accepted Answer

Exchange rates are the values at which one currency can be exchanged for another, and these rates can greatly impact global marketing efforts. For example, if a company is based in one country but selling products in another country with a weaker currency, a sudden drop in exchange rates could make their products more expensive and less competitive in that market. On the other hand, a favorable exchange rate could make a company's products more affordable and attractive to consumers in another country.

Question 7

A country is directly affected by numerous factors including the government's orientation toward foreign companies and trade with other countries. This factor, known as ________can drastically affect external investment to the country.

Accepted Answer

Political stability refers to the consistency and predictability of the government's policies and actions, which influences the confidence of external investors in the country's economic environment. A government that is unstable or has unfavorable policies towards foreign companies and trade can discourage external investment, while a stable government that encourages trade and foreign investment can attract more outside investment.

Question 8

The PRS group maintains a website that can be used to determine:

Accepted Answer

The PRS group is known for providing political risk analysis and ratings. Therefore, their website is likely to contain information related to a country's political risk ratings. The other options are not related to the main function of the PRS group.

Question 9

Indirect exporting is:

Accepted Answer

Indirect exporting is when a firm sells its domestically produced goods in a foreign country through an intermediary, such as an export trading company or an agent located in the foreign market. This allows the firm to expand its market reach without directly selling or marketing to foreign customers.

Question 10

The practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities is known as:

Accepted Answer

Microfinance refers to the practice of providing small loans to individuals who do not have access to traditional banking services. These loans are typically collateral-free and are given to individuals who want to start small businesses or engage in other income-generating activities. Microfinance institutions also provide other financial services, such as savings accounts, insurance, and financial education, to help individuals build financial literacy and stability.

Question 11

The term economic infrastructure refers to:

Accepted Answer

Economic infrastructure refers to the basic physical and organizational structures and facilities needed for the operation of a society or enterprise, including communication, transportation, financial, and distribution systems. It does not refer to the people or wealth of a nation, nor does it encompass all natural resources.

Question 12

The most significant difference between direct exporting and indirect exporting is that the exporting firm operates ________in the foreign country.

Accepted Answer

Direct exporting involves the exporting firm operating directly in the foreign country, while indirect exporting involves the use of intermediaries such as export management companies or trading companies to facilitate the export process. Therefore, the most significant difference between the two is the presence or absence of an intermediary. options A, B, and D are incorrect as they do not define the difference between direct and indirect exporting.

Question 13

Foreign countries with very low per capita incomes may, nonetheless, be attractive markets for expensive goods. To get a more accurate picture of a country's________ purchasing power, a country's must also be considered.

Accepted Answer

The income distribution of a country is important to consider because even though the per capita income may be low, there may be a small wealthy segment of the population who are interested in purchasing expensive goods.

Question 14

TravelEx, which is located at all of the country's major airports, routinely exchanges money from currency to another using a(n):

Accepted Answer

TravelEx exchanges money using the currency exchange rate, which is the value of one currency in relation to another.

Question 15

When a Canadian airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries, it is called:

Accepted Answer

When a Canadian airplane manufacturer sells its airplanes directly to business executives in Germany without using intermediaries, it is called direct exporting.

Question 16

A farm equipment manufacturer in the USA sells its shovels and wheelbarrows in Canada through Acklands-Grainger. The farm equipment manufacturer is operating through the pretense of:

Accepted Answer

Indirect exporting refers to selling products in a foreign market through intermediaries such as agents or brokers, and in this case, the manufacturer is selling their products in Canada through a third-party distributor, Acklands-Grainger.

Question 17

Chrysler Corporation wanted to sell its Jeeps in Japan. The car was priced in U.S. dollars at about $19,000, but when it reached the Japanese car showrooms, its price was over 3,100,000 Japanese yen, and the Japanese could not afford to buy it. Its price was set without regard for the:

Accepted Answer

The price of the Jeep was set without regard for the currency exchange rate between the U.S. dollar and Japanese yen, leading to a price that was too high for Japanese consumers to afford.

Question 18

A country's economic infrastructure consists of all of the following EXCEPT:

Accepted Answer

Economic infrastructure refers to the physical and organizational structures and facilities needed for the efficient operation of an economy, such as roads, telephone lines, and distribution systems. The political system is not a physical or organizational structure and thus does not fall under economic infrastructure.

Question 19

Turkmenistan is a former Soviet republic in Central Asia. The Internet debuted late in Turkmenistan and has advanced only slightly since its introduction. In 1996 the government created the Telecommunications Ministry to oversee and license Telecommunications services. The ministry has taken the national domain. TM for Itself and forbids individuals or companies from posting their own websites. In 2000, The Telecommunications Ministry set up an Internet service provider and shut down all of the independent ISPs in the nation because they had "falsified information." This Misuse of power reflects a problem in Turkmenistan's________ environment.

Accepted Answer

The actions of the Telecommunications Ministry demonstrate governmental control and regulation of the Internet, indicating a political-regulatory problem in Turkmenistan's environment.

Question 20

Standards for registration and certification of a manufacturer's quality management and quality assurance system are ________standards.

Accepted Answer

ISO 9000 is a set of international standards for quality management and quality assurance systems. It provides guidelines for companies to follow in order to ensure that their products and services consistently meet customer requirements and regulatory standards. Certification to ISO 9000 standards is a widely recognized way for companies to demonstrate their commitment to quality and improve their overall operations. IPD 2000, XK-90, and 7-300ZX are not recognized standards for quality management systems.

Quiz 7: Reaching Global Markets